State comparison
California vs Texas
A sourced, side-by-side look at taxes, home insurance context and climate risk — so you can judge the trade-offs of moving from California to Texas for yourself.
General information, not tax advice. Confirm current rates with the linked sources or a tax professional before you decide.
| Category | California | Texas |
|---|---|---|
| State income tax | Progressive income tax with one of the highest top marginal rates in the country.Source: California Franchise Tax Board | No state tax on wage income.Source: Tax Foundation |
| Sales tax | State sales tax plus local district add-ons; combined rates vary by city/county.Source: Tax Foundation — sales tax rates | State sales tax plus local add-ons; among the higher combined rates nationally.Source: Tax Foundation |
| Property tax | Property taxes are capped by Proposition 13 and generally assessed near 1% of purchase price plus voter-approved add-ons.Source: Tax Foundation — property taxes | No income tax is offset by property taxes that are among the higher effective rates in the country.Source: Tax Foundation |
| Homeowners insurance context | Wildfire risk has pushed some insurers to limit new homeowners policies in parts of the state.Source: California Department of Insurance | Hail, wind and hurricane exposure vary widely by region of the state.Source: Texas Department of Insurance |
| Climate risk context | Elevated wildfire and earthquake risk statewide, with drought and heat risk in inland areas.Source: FEMA National Risk Index | Significant severe-storm, hail, hurricane (coastal) and drought exposure depending on region.Source: FEMA National Risk Index |
Sources
General information, not tax advice.